Empirical patterns of firm growth and R&D investment: A quality ladder model interpretation

Economic Journal

Volumn 110, Issue 463, 2000, Pages 363-387

  Klette, Tor Jakob ^a   Griliches, Zvi ^b  

^a UNIVERSITY OF OSLO   (Norway)

^b HARVARD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

FIRM SIZE; INDUSTRIAL DEVELOPMENT; RESEARCH AND DEVELOPMENT;

EID: 0034068270     PISSN: 00130133     EISSN: None     Source Type: Journal    
DOI: 10.1111/1468-0297.00529     Document Type: Article

References (61)

1. Acs, Z. J. and Audretsch, D. B. (1991). 'R&D, firm size, and innovative activity.' In (Z. J. Acs and D. B. Audretsch, eds.), Innovation and Technological Change: An International Comparison. New York: Harvester Wheatsheaf.
2. Aghion, P., Dewatripont, M. and Rey, P. (1999). 'Competition, financial discipline and growth', Review of Economic Studies (forthcoming).
3. Aghion, P. and Howitt, P. (1992). 'A model of growth through creative destruction', Econometrica, vol. 60, pp. 323-51.
4. Andersen, S. P., de Palma, A. and Thisse, J.-F. (1992). Discrete Choice Theory of Product Differentiation, Cambridge (MA): MIT Press.
5. Arrow, K. J. (1962). 'Economic welfare and the allocation of resources to inventions.' In (R.R. Nelson, ed.), The Rate and Direction of Inventive Activity, Princeton: Princeton University Press.
6. Barro, R. and Sala-i-Martin, X. (1995). Economic Growth, New York: McGraw-Hill.
7. Berndt, E. R., Griliches, Z. and Rosett, J. (1993). 'Auditing the producer price index: micro evidence from prescription pharmaceutical preparations'. Journal of Business & Economic Statistics, vol. 11, pp. 251-64.
8. Berry, S. T. (1994). 'Estimating discrete choice models of product differentiation', RAND Journal of Economics, vol. 25, pp. 242-62.
9. Blundell, R., Griffith, R. and Windmeijer, F. (1999). 'Individual effects and dynamics in count data models'. IFS Working Paper W99/3.
10. Bound, J., Cummins, C., Griliches, Z., Hall, B. and Jaffe, A. (1984). 'Who does R&D and who patents?' in (Z. Griliches, ed.): R&D, Patents and Productivity, Chicago: University of Chicago Press.
11. Brouwer, N. M. and Kleinknecht, A. (1994). 'Monopoly profits from innovation and wage differentials. A micro-econometric investigation.' Mimeo, Free University of Amsterdam.
12. Caballero, R. J. and Jaffe, A. (1993). 'How high are the giants shoulders: an empirical assessment of knowledge spillovers and creative destruction in a model of economic growth.' In (O. J. Blanchard and S. Fischer, eds.), NBER Macroeconomic Annual 1993. Cambridge (MA): MIT Press.
13. Cohen, W. M. (1995). 'Empirical studies of innovative activity.' In (P. Stoneman, ed.), Handbook of Innovation and Technological Change. Oxford: Blackwell.
14. Cohen, W. M. and Klepper, S. (1996). 'A reprise of size and R&D.' ECONOMIC JOURNAL, vol. 106, pp. 925-51.
15. Cohen, W. M. and Levin, R. (1989). 'Empirical studies of innovation and market structure.' Ch. 18 in (R. Schmalensee and R. Willig, eds.), Handbook of Industrial Organization, vol. 2. Amsterdam: North Holland.
16. Cohen, W. M., Levin, R. and Mowery, D. (1987). 'Firm size and R&D intensity: a re-examination.' Journal of Industrial Economics, vol. 35, pp. 543-65.
17. Dasgupta, P. (1986). 'The theory of technological competition,' in (J. E. Stiglitz and G. F. Mathewson, eds.), New Developments in the Analysis of Market Structure. Cambridge (MA): MIT Press.
18. Ericson, R. and Pakes, A. (1995). 'Markov perfect industry dynamics: A framework for empirical analysis.' Review of Economic Studies, vol. 62, pp. 53-82.
19. Evans (1987) 'Tests of alternative theories of firm growth.' Journal of Political Economy, vol. 95, pp. 657-74.
20. Geroski, P. A. (1998). 'An applied econometrician's view of large company performance.' Review of Industrial Organization, vol. 13, pp. 271-93.
21. Geroski, P. A., Machin, S., Van Reenen, J. (1993). 'Innovation and firm profitability,' RAND Journal of Economics, vol. 24, pp. 198-211.
22. Gilbert, R. J. and Newbery, D. M. G. (1982). 'Preemptive patenting and the persistence of monopoly.' American Economic Review, vol. 72, pp. 514-26.
23. Gilbert, R. J. and Newbery, D. M. G. (1984). 'Uncertain innovation and the persistence of monopoly: comment.' American Economic Review, vol. 74, pp. 238-42.
24. Griliches, Z. (1990). 'Patent statistics as economic indicators: a survey.' Journal of Economic Literature, vol. 28, pp. 1661-707.
25. Griliches, Z. (1994). 'Productivity, R&D, and the data constraint.' American Economic Review, vol. 84, pp. 1-23.
26. Griliches, Z. and Cockburn, I. (1994). 'Generics and new goods in pharmaceutical price indexes.' American Economic Review, vol. 84, pp. 1213-32.
27. Griliches, Z., Hall, B. H. and Pakes, A. (1991). 'R&D, patents, and market value revisited: is there a second (technological opportunity) factor?' Economics of Innovation and New Technology, vol. 1, pp. 183-201.
28. Grossman, G. M. and Helpman, E. (1991a). Innovation and Growth in the Global Economy, Cambridge (MA): MIT Press.
29. Grossman, G. M. and Helpman, E. (1991b). 'Quality ladders in the theory of economic growth.' Review of Economic Studies, vol. 58, pp. 43-61.
30. Gruber, H. (1992). 'Persistence of leadership in product innovation.' Journal of Industrial Economics, vol. 40, pp. 359-75.
31. Hall, B. H. (1987). 'The relationship between firm size and firm growth in the US manufacturing sector.' Journal of Industrial Economics, vol. 35, pp. 583-606
32. Hall, B. H., Griliches, Z. and Hausman, J. A. (1986). 'Patents and R&D: is there a lag?' International Economic Review, vol. 35, pp. 583-606.
33. Himmelberg, C. and Petersen, B. C. (1994). 'R&D and internal finance: a panel study of small firms in high-tech industries.' Review of Economics and Statistics, vol. 76, pp. 38-51.
34. Ijiri, Y. and Simon, H. (1977). Skewed Size Distributions and the Sizes of Business Firms. Amsterdam: North Holland.
35. Jovanovic, B. (1982). 'Selection and the evolution of industry.' Econometrica, vol. 50, pp. 649-70.
36. Kihlstrom, R. E. and Laffont, J. J. (1979). 'A general equilibrium theory of firm formation based on risk aversion.' Journal of Political Economy, vol. 87, pp. 19-48.
37. Klepper, S. (1996). 'Entry, exit, growth, and innovation over the product cycle.' American Economic Review, vol. 86, pp. 562-83.
38. Klette, T. J. and Førre, S. E. (1998). 'Innovation and job creation in a small open economy - evidence from Norwegian manufacturing plants 1982-92.' The Economics of Innovation and New Technology, vol. 5, pp. 247-72.
39. Klette, T. J. and Griliches, Z. (1998). 'Empirical patterns of firm growth and R&D investment: a quality ladder model interpretation.' NBER Working Paper no. 6753.
40. Klette, T. J. and Johansen, F. (1998). 'Accumulation of R&D capital and dynamic firm performance: a not-so-fixed effect model.' Annales d'Economie et de Statistique. No. 49/50, pp. 389-419.
41. Kortum, S. (1993). 'Equilibrium R&D and the decline in the patent-R&D ratio: U.S. evidence.' American Economic Review (Papers and Proceedings), vol. 83, pp. 450-7.
42. Kuznets, S. (1930). Secular Movements in Production and Prices, Boston: Houghton Mifflin Co.
43. Lippman, S. A. and Rummelt, R. P. (1982). 'Uncertain instability: An analysis of interfirm differences under competition.' Bell Journal of Economics, vol. 13, pp. 418-38.
44. Lucas, R. E. (1978). 'On the size distribution of firms.' Bell Journal of Economics, vol. 9, pp. 508-23.
45. Mansfield, E., Schwartz, M. and Wagner, S. (1981). 'Imitation costs and patents: an empirical study.' ECONOMIC JOURNAL, vol. 91, pp. 907-18.
46. McCloughan, P. (1995). 'Simulation of concentration development from modified Gibrat growth-entry-exit processes.' Journal of Industrial Economics, vol. 43, pp. 405-33.
47. Metrick, A. and Zeckhauser, R. (1996). 'Price versus quantity: market clearing mechanisms when sellers differ in quality.' NBER Working Paper 5728.
48. Nelson, R. R. (1988). 'Modeling the connections in the cross section between technical progress and R&D intensity.' RAND Journal of Economics, vol. 19, pp. 478-85.
49. Nickell, S. J. (1996). 'Competition and corporate performance.' Journal of Political Economy, vol. 104, pp. 724-46.
50. Pakes, A. (1994). 'Estimation of dynamic structural models. Problems and prospects II: mixed continuous-discrete models of market interactions.' In (C. Sims and J. J. Laffont, eds.), Proceedings of the 6th World Congress of the Econometric Society. Cambridge: Cambridge University Press.
51. Pakes, A. and Ericson, R. (1998). 'Empirical implications of alternative models of firm dynamics.' Journal of Economic Theory, vol. 79, pp. 1-45.
52. Pakes, A. and McGuire, P. (1994). 'Computing Markov-perfect Nash equilibria: numerical implications of a dynamic differentiated product model.' RAND Journal of Economics, vol. 25, pp. 555-89.
53. Pakes, A. and Schankerman, M. (1984). 'An exploration into the determinants of research intensity,' in (Z. Griliches, ed.), R&D, Patents and Productivity, Chicago: Chicago University Press.
54. Reinganum, J. F. (1983). 'Uncertain innovation and the persistence of monopoly.' American Economic Review, vol. 73, pp. 741-8.
55. Reinganum, J. F. (1985). 'Innovation and industry evolution.' Quarterly Journal of Economics, vol. 100, pp. 81-98.
56. Romer, P. M. (1990). 'Endogenous technological change.' Journal of Political Economy, vol. 98, pp. S71-S102.
57. Schmalensee, R. (1989). 'Inter-industry studies of structure and performance.' Ch. 16 in (R. Schmalensee and R. Willig, eds.), Handbook of Industrial Organization, vol. 2. Amsterdam: North Holland.
58. Schumpeter, J. A. (1942). Capitalism, Socialism and Democracy, London: George Allen and Unwin Ltd.
59. Steindl, J. (1968). 'Size distributions in economics.' In (D. L. Sills, ed.), International Encyclopedia of Social Sciences. London: MacMillan.
60. Sutton, J. (1997). 'Gibrat's legacy.' Journal of Economic Literature, vol. 35, pp. 40-59.
61. Thompson, P. (1996). 'Technological opportunity and the growth of knowledge: a Schumpeterian